MEPCO issues prospectus for capital hike, drops rights issue plan

Logo of Middle East Paper Co. (MEPCO)

Middle East Paper Co. (MEPCO) issued today, Dec. 7, the prospectus for offering new shares worth about SAR 630 million, while suspending rights issue.

The company plans to offer about 20 million shares at SAR 31.5 each, to increase capital from SAR 666.67 million to SAR 866.67 million.

The capital increase is aimed to reinforce the strategic growth initiatives planned by the company by accelerating its placement as the national leading in Saudi Arabia for the integrated paper and packaging industry and the positioning of the brand name globally.

This is in addition to the development of the company as a key enabler in the waste management and recycling industry, directly contributing to the Saudi Vision 2030, while garnering greater access to resources for external growth through value accretive merger and acquisition opportunities beyond its current domain or capabilities.

MEPCO obtained, on Dec. 4, the Capital Market Authority’s (CMA) approval to increase its capital through issuing about 20 million new shares and suspending preferential rights worth SAR 630 million.

In May, the company inked a memorandum of understanding (MoU) with the Public Investment Fund (PIF), under which the latter will subscribe to the new shares at SAR 31.50 each, representing a significant minority stake.